Resources for Homeowners Post-Foreclosure Moratorium

If you are a homeowner having trouble keeping up with your mortgage payments, there are resources available to assist you, even if you have applied for assistance through the New York State Homeowner Assistance Fund (NYS HAF).

If you are a homeowner having trouble keeping up with your mortgage payments, there are resources available to assist you. It is important that you act quickly to get the help you need. The sooner you act, the more options you may have available to you.

Here are some steps you can take if you are unable to make your payments:

  1. Contact your lender or mortgage servicer immediately. The servicer is not necessarily the bank you took a loan from; it’s the financial institution that sends your monthly mortgage bill. Tell them why you are unable to make payments, and that you would like to review your options around forbearance. The servicer may offer several of the following options:

    • Reinstatement — You repay the full amount of your deferred payments in one lump sum in the near future, and resume your regular mortgage payments.

    • Repayment — Your servicer would add the amount of your suspended payments onto your current monthly payment. This means that your monthly payments will increase until the balance has been paid.

    • Loan modification — Ask if your loan is eligible for reduced monthly payments. Your mortgage term would be longer, but your monthly payments would be lower.

    • Payment deferral — If you cannot resume regular payments, you may be able to defer missed payments. In this case, you would not pay the missed payments until the end of your loan term or when your home is sold or refinanced.

    • Extended loan term — Your servicer may agree to extend your loan term by spreading out your payments.

  2. Get free help from a housing counselor or nonprofit legal services provider. Housing counselors can give you advice about foreclosure-related issues and help you develop a plan of action. They may also be able to negotiate with your lender and direct you to legal services in your area.

    • The New York Attorney General’s Homeowner Protection Program (HOPP) offers free, high-quality housing counselors, financial experts, and lawyers to assist you, and has already helped over 120,000 New Yorkers avoid homelessness, crushing debt, foreclosure, and displacement. Visit homeownerhelpny.org to get local support or call 1-844-776-9423 for assistance.

    • New York’s Department of Financial Services (DFS) has a list of housing counselors by county.

    • HOPE NOW is an alliance of HUD-approved counseling agents, servicers, and investors that provide free assistance. HOPE NOW has a 24-hour toll-free hotline at 888-995-HOPE (888-995-4673).

    • You may also call 311 if you live in New York City and ask for The Center for NYC Neighborhoods, a nonprofit organization dedicated to protecting and promoting affordable homeownership.

  3. Beware of scams and deed theft. Do not trust anyone who asks for an upfront fee in exchange for getting you a loan modification, saving your home from default, or stopping a foreclosure or tax sale. You should not have to pay anyone to help you avoid foreclosure. Do not trust anyone who says they can “save” your home if you transfer or sign over the deed to your house to them so that you can refinance your loan or catch up on mortgage payments. Never submit your mortgage payments to anyone other than your mortgage company without their approval. For more on how to avoid scams, go to homeownerhelpny.org/scams.

    Consumer Alert: Scammers are seeking to take advantage of potential applicants to the New York State Homeowner Assistance Fund (NYS HAF). The New York State Attorney General (OAG) has compiled tips to avoid NYS HAF and mortgage rescue-related scams. For more information, visit nyhomeownerfund.org/scam-alert.

  4. File a complaint against a regulated entity.

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